Ques1. Comment on Indian IT industry structure and future. Answer 1. With estimated revenues of US$ 36.

3 billion in FY 2005-06, the Indian Information Technology and Information Technology Enabled Services (IT-ITES) Industry continues to grow 5 times as fast as the global IT services industry, clocking a Compounded Annual Growth Rate (CAGR) of 28% since the FY 1999-2000. NASSCOM has forecast that the growth rate of over 25% is expected to continue and will help Indian IT-ITES exports exceed US$ 60 billion by FY 2010. The expected market size and CAGR by geographic region shows that the Americas and Western Europe will be the largest markets but the CAGR in these markets will be less than 4%. The Latin American and Asian markets, though smaller are expected to have a higher CAGR and are the strategic focus areas of the IT companies. ___________________________________________________________________________ Ques2. Prepare a SWOT analysis for an Indian IT industry. Ans2. < Strengths > Good present growth rate (5 times as fast as the global IT industry) More opportunities to grow in future. < Weaknesses > Less availability of skilled personnel & high attrition rate. Country level risks, as the industry is now establishing operations in many countries. Margin-pressure from international players. < Opportunities > Increasing acceptance of outsourcing as a relevant business strategy in a globalised world. Clients are more comfortable to partner with large global players with scale & with uniform high quality& security processes across the enterprise. Clients are considering Indian companies for mega deals with decision cycle time of 8 to 12 months. Clients are demanding delivery excellence from distributed business units using uniform processes globally to deliver high quality service. < Threats >

Competition from global IT companies that are expanding operations in India, which in turn increases wage rate, cost & price. Training of its personnel to meet customer demands (without required training, the customers could subsequently be lured away by competitors).

___________________________________________________________________________ Ques3. Why was China an important market for TCS? Ans3. China was an important market for TCS because of the following reasons: A huge economy having low cost of workers. Being in the close proximity of Japan (another important market). Chinas worldwide influence to obtain contracts in difficult markets (e.g. Japan). To get business from both domestic & foreign firms within China.

___________________________________________________________________________ Ques4. How did TCS mitigate political risk in China? Ans4. TCS mitigated political risk in China by applying for a joint venture in the tender. As a result, it got approval from National Development & Reforms Commission to launch a joint venture with three Chinese partners. ___________________________________________________________________________ Ques5. Why was Japan an important market of TCS? Can we say that entry in China was the first step for entering Japan? Ans5. Being a big economy, Japan was an important market for TCS. Also, political risk in Japan was less than that in China. Yes, it would indeed be correct to say that China was the first step for entering Japan as it was easier to do business there as a Chinese company vis--vis an Indian company because of Chinas worldwide influence to obtain contracts in difficult markets. ___________________________________________________________________________